Two Hundred Million…And Counting
CTIA President and CEO Steve Largent outlines 2006 Roadmap
Wireless Wave: 2006 brought with it the wireless industry’s 200 millionth subscriber. Why is this particular milestone significant for the industry?
Steve Largent: My personal opinion is that this milestone signifies how valuable wireless has become to people of all walks of life. When you’re in the consumer products business – or really any business - but consumer products in particular, you better be able to demonstrate to consumers in all market segments that your product is going to enhance their lives in some significant regard. If you can’t, you’re not going to be around for very long.
In the earlier days of our industry, which really wasn’t that long ago, wireless was known as a luxury that CEO’s and rich people enjoyed. Due to its high price, it just wasn’t considered a viable product for average consumers at that time. But as we all know now, that picture changed, and it changed overnight. If you look at the five-year period between 1990 and 1995, you’ll see exactly what I’m talking about. I think this is a truly fascinating time in our industry’s history.
In 1990, there were only four million wire-less subscribers in America. There were not yet 5,000 cell sites across the entire country and the average local monthly wireless bill was right around $84. But just five years later, you see a completely different picture. In 1995, the average bill had dropped to around $52, the number of cell sites had quadrupled to nearly 20,000 and the nationwide sub-scriber base had increased to more than 28 million. And the news only got better from there.
My point is that the only way to reach 200 million customers in any industry is to prove that your products can enhance the lives of the people who use them. Obviously wireless has done just that.
Wireless Wave: You mention the value that wireless has brought to its customers and how it has demonstrated its ability to enhance the lives of its users. Could you shed some more light on some of the ways wireless has proven its worth to the Ameri-can people?
Steve Largent: You bet, but that might detain you here past lunch. {laughter} I’ll try to be brief. Let’s go back to 1990 again. If you have a wireless device at this time, it’s either plugged into the lighter in your car or it’s so big that if you attempt to put it in your pocket it would easily rip the lining out. It costs you roughly $900 just to buy it, and then nearly $85 a month to use, and the only thing you can do on it is talk. Fast forward to today.
My wireless device weighs virtually noth-ing, it fits in my shirt pocket, its cost is basically absorbed in the service contract and the average monthly bill is less than $50. Now, that’s just the economic story. And it’s an incredible story. But let’s move on to technology and innovation.
